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  Taiwan's Bid for CPTPP Membership CPTPP member... - Taipei Economic and Cultural Office in Canada 駐加拿大台北經濟文化代表處 :::
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Taiwan's Bid for CPTPP Membership CPTPP members recognize Taiwan's interest in accession

Taiwan's Bid for CPTPP Membership

CPTPP members recognize Taiwan's interest in accession

2020.07.16

1. Our Vision

The U.S.-China trade conflict and the COVID-19 pandemic have drastically altered the global trade and economic landscape. In order to gain a competitive advantage, increase economic output, and create jobs, we need to consider how and with whom we do business in the future.
Taiwan has performed well in the Global Competitiveness Report of WEF and IMD, and is ranked among the world's top 10 countries in the Cushman & Wakefield's Manufacturing Risk Index and Deloitte's Global Manufacturing Competitiveness Index. At this crucial juncture of re-adjustment of global supply chains, the world needs worthy partners like Taiwan more than ever, and Taiwan needs the world.
This is why Taiwan is pursuing accession, and we hope to achieve the following goals:
(1). Secure trade and investment opportunities

Although Taiwan is one of the top-20 trading nations in the world, we are just a medium-sized, open economy that is highly influenced by global demand, and international markets are especially very important to Taiwan. While our trading partners can increase their competitive advantage through FTAs, we must seek out every opportunity available.

(2). Diversify our trade links

The Asia-Pacific countries and markets under the CPTPP are diverse and at various levels of development. As such, joining the CPTPP will allow us to diversify our trade, avoid overconcentration in a few markets, and increase our economic security at a time of heightened uncertainty and disruption in the world.

(3). Integrate with the world and improve economic efficiency

Taiwan needs the CPTPP to upgrade its economy. The CPTPP is one of the most modern trade agreements, establishing new rules that address the needs of the business community. Taiwan’s trade regime will be more in line with international standards, and our domestic industries will be able to adjust themselves more efficiently and effectively.

(4). Secure our place in the global supply chain

The COVID-19 pandemic has forced us all to think about restructuring supply chains and allocation of resources. Joining the CPTPP will secure a place for our exports in these turbulent times and avoid marginalization.

(5). Fight protectionism

Taiwan has always been a strong proponent of the rules-based, free, and open multi-lateral trading system as embodied by the WTO. Taiwan’s accession to the CPTPP would demonstrate our commitment to free trade by removing trade barriers and promoting common prosperity for all.
2. Our Accomplishments

The CPTPP offers a great opportunity for Taiwan to participate in the Asia-Pacific market. In the past three years, the total GDP of CPTPP member reached USD2.5 trillion. Taiwan has close economic and trade ties with all of them, with the 11 members accounting for more than one-fifth of Taiwan's total exports. Among CPTPP members, Japan, Singapore, Malaysia and Vietnam are among Taiwan's top 10 trading partners. Obviously, it is important for Taiwan to further develop CPTPP markets as a bloc.
(1). According to the results of the quantitative simulation of Taiwan's Input-Output Model, Taiwan's GDP will grow by at least 0.52% as a result of its accession to the CPTPP. There will also be spillover effects that cannot be measured quantitatively, such as:

  • Reducing job oss caused by production relocation;
  • Expanding environmenta and labor protection.
  • Promoting fair competition between pubic and private sectors; and
  • Assisting SMEs to integrate into the gobal market through transparency of regulations, trade facilitation and e-commerce;

(2). Creating a better business environment to attract foreign direct investment;Ministries across all sectors in agriculture, manufacturing, and services, as well as other government entities, have consulted with interest groups and stakeholders, and garnered huge support for Taiwan's accession to the CPTPP. As such, the government is actively revamping our legal system in order to meet the CPTPP's requirement, including:

  • making reguations more transparent;
  • enhancing IPR protection for medicines by providing data excusivity and patent linkage, etc.
  • simpifying the regulations on labeling of cosmetic hygiene and safety; and
  • amending the Pant Variety and Plant Seed Act to expand the scope of protection to be in line with the UPOV;
  • modernizing the management of ocean fisheries;
  • redefining the scope of the posta monopoly;
  • enhancing protection of intelectual property rights of new pesticides;

(3). Through existing bilateral mechanisms and APEC, we have actively engaged with and sought support from all CPTPP members in accordance with the Accession Process introduced in the first CPTPP Ministerial Meeting in January 2019.
3. Next Steps

We have actively engaged with all CPTPP members at various levels to explain our preparations for accession to the CPTPP, and we are ready to meet the requirements of the CPTPP Agreement. CPTPP members recognize our efforts, and welcome any trade partners who can meet the requirements of the CPTPP to join.

Our approach follows the process outlined by the CPTPP Commission in early 2019, which encourages countries to engage informally with every CPTPP member, addressing any concerns and questions before submitting the formal application.

All of our engagement with CPTPP members take into account both the progress of bilateral talks with CPTPP members as well as Taiwan's broader interests and domestic priorities. Taiwan sees significant advantages in joining CPTPP and believes that our accession can show that CPTPP is a superior model for the uncertain international environment that now exists.

In the meantime, our government will continue public outreach on Taiwan's accession to the CPTPP, which will form basis for our dialogue with CPTPP Members.
For more information, please see CPTPP Q&A (https://www.ey.gov.tw/otn/47E95C7DA961C934)

or visit our website (https://cptpp.trade.gov.tw/)

or see the following document: Taiwan's Bid for CPTPP Membership - CPTPP members recognize Taiwan's interest in accession